Competition in the Market for Takeover Advisers

Raymond da Silva Rosa, Philip Lee, Michael Skott and Terry Walter ()
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Raymond da Silva Rosa: UWA Business School, The University of Western Australia, 35 Stirling Highway, Crawley, WA 6009.
Philip Lee: School of Business, University of Sydney, Camperdown, NSW, 2006.
Michael Skott: Boston Consulting Group, Level 28, Chifley Tower, 2 Chifley Square Sydney NSW 2000.

Australian Journal of Management, 2004, vol. 29, issue 1_suppl, 61-92

Abstract: We investigate factors that motivate bidders to engage advisers, we model adviser selection and we test whether value-adding advisers gain market share. Our sample includes 801 attempted takeovers over 1989–1998 in Australia. Our results indicate advisers are likely to be engaged if the takeover deal is large, hostile, and includes non-cash compensation. We find deal completion is not as closely correlated with adviser rankings as does Rau (2000) but we confirm his finding that adviser ranked high on market value of deals advised do not have a comparative advantage in adding value to firms. However, we document some (limited) evidence that value-adding advisers achieve an increase in subsequent deal flow. Our results are consistent with specialization among takeover advisers.

Keywords: TAKEOVER ADVISERS; MERGERS AND ACQUISITIONS; ADVISER RANKING (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:29:y:2004:i:1_suppl:p:61-92

DOI: 10.1177/031289620402901S03

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